Precise Biometrics announces rights issue of SEK 54 million

• The Board of Directors of Precise Biometrics (“Precise Biometrics”) has resolved, subject to approval of the AGM on April 27, to undertake an issue with preferential rights for Precise Biometrics’ shareholders that will raise a maximum of SEK 54 million before deduction of issue related costs.

• Five (5) existing shares entitles to subscription of two (2) new shares in Precise Biometrics. The subscription price is SEK 1.00 per share.

• The rights issue is guaranteed to SEK 38 million, 70% of the rights issue. All current shareholders in the Board of Directors and company management have already committed to subscribe for their pro-rata shares in the rights issue.

• The rights issue is carried out as a part of the Company’s business plan – Plan 2015 - which mainly includes further investments in sales, marketing and product development targeted towards biometric solutions for the SmartPhone and Tablet PC market. The rights issue will also set the foundation for an ambitious market penetration through new human resources within development and sales targeted towards specific industries such as Banking and Government, as well as it will finance working capital for new orders.

• Following approval of the AGM on April 27 2011, the subscription period will run from May 5 - 20, 2011.

”Plan 2015 is an ambitious and aggressive platform that will require investments in product development and human resources. We see great potential for biometric solutions targeted towards mobile handsets and to achieve success in this field we are investing in product development for the mobile segments in the coming period. Plan 2015 will also require new skill sets and we are in the process of employing new people with relevant sales experience from specific industries. But we also need resources within product development that corresponds with the journey we have begun. We furthermore continue to believe in strong growth in the two other business units and we are also expecting large hardware orders from US government agencies. The rights issue will help finance these orders” says Thomas Marschall, CEO at Precise Biometrics.

Background and rationale

During 2010, Precise Biometrics developed a strategic platform for the company’s development up until the year 2015 – called Plan 2015. A part of the plan includes developing a more efficient and customer oriented organization. As of 2011, Precise Biometrics has therefore chosen to divide its organization into three new business units: Mobile, IAM and Access Solutions. The company’s objective is that the new business unit Mobile will have a significantly positive effect on profitability by expanding Precise Biometrics’ technology to a new market while continuing to build upon the success the company has had in the other two business units. As earlier communicated, IAM is expected to achieve profitability in 2011. There is furthermore the possibility of Access Solutions also being profitable in 2011.

To reach the targets set out in Plan 2015, the company will need to make investments mainly in the Mobile business unit. The company is already in the development process of products targeted towards the SmartPhone and Tablet PC markets and in 2011 Precise Biometrics will launch more products than any previous year. This initially requires significant investments in Research & Development. To simultaneously boost the company’s market impact, the sales organisation shall be strengthened with sales people with experience from specific industries such as Banking and Government. As a result of increased demand in hardware, particularly from the US market, a part of the net proceeds is intended to be used to finance increased working capital needs.   

For more information
Thomas Marschall, President and CEO, Precise Biometrics AB
Tel. 46 (0)46 31 11 10 or 46 (0) 734 35 11 10
E-mail thomas.marschall@precisebiometrics.com

Patrik Norberg, CFO, Precise Biometrics AB
Tel. 46 (0)46 31 11 47 or 46 (0) 734 35 11 47
E-mail patrik.norberg@precisebiometrics.com

Precise Biometrics is a market-leading provider of products and solutions for fingerprint recognition. The technology proves people's identities in a fast and secure way, while it reduces costs related to password management, identity theft and fraud. 

Precise Biometrics serves business and government organizations throughout the world and its technology is licensed to close to 100 million users. Precise Biometrics is listed on NASDAQ OMX Stockholm small cap list (PREC).

For more information, please visit www.precisebiometrics.com